RSG Cash-Secured Put Strategy
RSG (Republic Services, Inc.), in the Industrials sector, (Waste Management industry), listed on NYSE.
Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, it offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers.
RSG (Republic Services, Inc.) trades in the Industrials sector, specifically Waste Management, with a market capitalization of approximately $62.66B, a trailing P/E of 29.02, a beta of 0.44 versus the broader market, a 52-week range of 196.41-258.75, average daily share volume of 1.5M, a public-listing history dating back to 1998, approximately 42K full-time employees. These structural characteristics shape how RSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.44 indicates RSG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RSG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on RSG?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current RSG snapshot
As of May 15, 2026, spot at $208.01, ATM IV 19.30%, IV rank 1.35%, expected move 5.53%. The cash-secured put on RSG below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this cash-secured put structure on RSG specifically: RSG IV at 19.30% is on the cheap side of its 1-year range, which means a premium-selling RSG cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.53% (roughly $11.51 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RSG should anchor to the underlying notional of $208.01 per share and to the trader's directional view on RSG stock.
RSG cash-secured put setup
The RSG cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RSG near $208.01, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RSG chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 RSG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $200.00 | $1.90 |
RSG cash-secured put risk and reward
- Net Premium / Debit
- +$190.00
- Max Profit (per contract)
- $190.00
- Max Loss (per contract)
- -$19,809.00
- Breakeven(s)
- $198.10
- Risk / Reward Ratio
- 0.010
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
RSG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RSG. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$19,809.00 |
| $46.00 | -77.9% | -$15,209.89 |
| $91.99 | -55.8% | -$10,610.79 |
| $137.98 | -33.7% | -$6,011.68 |
| $183.97 | -11.6% | -$1,412.58 |
| $229.97 | +10.6% | +$190.00 |
| $275.96 | +32.7% | +$190.00 |
| $321.95 | +54.8% | +$190.00 |
| $367.94 | +76.9% | +$190.00 |
| $413.93 | +99.0% | +$190.00 |
When traders use cash-secured put on RSG
Cash-secured puts on RSG earn premium while a trader waits to acquire RSG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RSG.
RSG thesis for this cash-secured put
The market-implied 1-standard-deviation range for RSG extends from approximately $196.50 on the downside to $219.52 on the upside. A RSG cash-secured put lets a trader earn premium while waiting to acquire RSG at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current RSG IV rank near 1.35% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on RSG at 19.30%. As a Industrials name, RSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RSG-specific events.
RSG cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. RSG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RSG alongside the broader basket even when RSG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RSG carry tail risk when realized volatility exceeds the implied move; review historical RSG earnings reactions and macro stress periods before sizing. Always rebuild the position from current RSG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RSG?
- A cash-secured put on RSG is the cash-secured put strategy applied to RSG (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With RSG stock trading near $208.01, the strikes shown on this page are snapped to the nearest listed RSG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RSG cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the RSG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 19.30%), the computed maximum profit is $190.00 per contract and the computed maximum loss is -$19,809.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RSG cash-secured put?
- The breakeven for the RSG cash-secured put priced on this page is roughly $198.10 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current RSG market-implied 1-standard-deviation expected move is approximately 5.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on RSG?
- Cash-secured puts on RSG earn premium while a trader waits to acquire RSG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RSG.
- How does current RSG implied volatility affect this cash-secured put?
- RSG ATM IV is at 19.30% with IV rank near 1.35%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.